A revised stylesheet with one entry
  being for the default namespace (no prefix) would be useful.

Note that attributes have a different meaning for no-prefix than
elements, so to include that case you have to use element nodes rather
than attribute nodes to generate the namespaces, but basically it's as
before


<namespaces>
<namespace prefix="xsd">schema ns</namespace>
<namespace prefix="">defaulttns</namespace>
<namespace prefix="yy">ACORD default URL</namespace>
<namespace prefix="acord-doc">ACORD doc URL</namespace>
<namespace prefix="jag">ACORD JAG URL</namespace>
</namespaces>





<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet xmlns:xsl="http://www.w3.org/1999/XSL/Transform"
                   version="1.0"
                   xmlns:saxon="http://icl.com/saxon"
                   exclude-result-prefixes="saxon"
             xmlns:xsd="schema ns"
             >
<xsl:output method="xml" indent="yes" />

<xsl:template match="/">

 <xsd:schema>

<xsl:variable name="rtf">
<xsl:for-each select="/namespaces/namespace">
      <xsl:variable name="x"><xsl:if test="string(@prefix)">:</xsl:if></xsl:variable>
      <xsl:element name="{@prefix}{$x}foo" namespace="{.}"/>
</xsl:for-each>
</xsl:variable>
<xsl:copy-of select="saxon:node-set($rtf)/*/namespace::*"/>
</xsd:schema>

</xsl:template>
</xsl:stylesheet>


$ saxon ns2.xml ns2.xsl
<?xml version="1.0" encoding="utf-8"?>
<xsd:schema
   xmlns:xsd="schema ns"
  xmlns="defaulttns"
  xmlns:yy="ACORD default URL"
  xmlns:acord-doc="ACORD doc URL"
  xmlns:jag="ACORD JAG URL"/>

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